Aliko Dangote, the President of Dangote Industries Limited, has lauded President Bola Ahmed Tinubu for the positive impact of the naira-for-crude swap deal on Nigeria’s economy. He highlighted that the policy has significantly contributed to reducing the prices of petroleum products across the country.
Price Reduction and Nationwide Partnership
In a significant move to bring relief to Nigerians, Dangote Refinery has partnered with MRS Petrol stations to ensure that petrol is sold at N935 per litre from its retail outlets nationwide. This development follows the refinery’s earlier price cut, which brought the cost of Premium Motor Spirit (PMS) at its loading gantry down to N899.50 per litre.
The partnership, announced in a statement shared on Dangote Refinery’s social media platforms on Saturday, aims to ensure that the reduced prices benefit end consumers. The new pricing has already taken effect in Lagos and will be implemented nationwide starting Monday.
Market Reaction and Downstream Pricing Competition
The announcement of the price reduction has triggered a pricing war in Nigeria’s downstream oil sector. Following Dangote Refinery’s price adjustment, the Nigerian National Petroleum Company Limited (NNPC) responded with its own price reduction to N899 per litre, further driving competition and providing relief to consumers.
In the statement, Dangote emphasized the need for collaboration among oil marketers, including NNPC retail outlets and other major players, to ensure the new pricing structure reaches Nigerians across the country.
He remarked, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will continue to work with various value chain players to deliver high-quality petrol at affordable prices. Our aim is for all Nigerians to have ready access to petroleum products that are good for their vehicles, health, and pockets.”
Naira-for-Crude Swap: A Game Changer
The naira-for-crude swap deal, approved by the Federal Executive Council under Tinubu’s administration, allows local refineries to purchase crude oil in naira and sell refined petroleum products in the same currency. This policy, which commenced on October 1, has eased pressure on the dollar and contributed to the stabilization of the local currency.
Dangote praised the initiative, stating, “This bold policy has created a more stable and sustainable framework for our domestic refining industry and has led to the availability of affordable petroleum products for Nigerians.”
Supporting Marketers and the Economy
To further support marketers, Dangote Refinery has introduced generous credit terms, facilitating easier access to refined products for interested parties. This move is designed to alleviate financial pressures on marketers and ensure the seamless distribution of petroleum products nationwide.
Looking Ahead
Dangote expressed gratitude to Nigerians for their unwavering support and to the government for fostering a conducive environment for the domestic refining industry. He reaffirmed his commitment to ensuring that Nigerians continue to benefit from the operations of Dangote Refinery.
“This is just the beginning. Our efforts are geared toward making petroleum products accessible and affordable for all Nigerians,” Dangote stated.
The pricing adjustments and collaborative efforts in the downstream sector mark a critical step in addressing fuel affordability in Nigeria, positioning Dangote Refinery as a key player in driving economic and social benefits for the nation.
